A sublease agreement is a contract between two tenants: a tenant currently living in a rented space, and an incoming tenant that will replace the person currently occupying the rental. In this situation, the departing tenant’s name still remains on the original lease while the new tenant is living in the space, and (in most jurisdictions) the original tenant would be ultimately responsible for any damages that may occur while the sublease agreement is in effect.
Tenants often want to sublease their apartment or rental property when they are looking to vacate the premises before their lease ends to avoid early-termination fees. Although there are a multitude of reasons why one would want to sublease their rental, here are some of the most common:
Landlord: The tenant should be sure that he or she has the landlord’s written permission before looking for a new tenant to sublease the space.
Principal Tenant: This is the tenant that will be moving out of the property, also referred to as the “Sublessor”.
Incoming Tenant: This is the tenant that will be moving in, in place of the principal tenant, referred to as the “Sublessee”.